Accounting and Tax Filing for UK and European Companies (2025 Guide)

Professional accounting services ensure accurate tax reporting and legal compliance for UK and EU businesses

Introduction

If you run a business in the United Kingdom or European Union, understanding your accounting obligations and tax filing requirements is crucial for staying compliant and avoiding fines. Whether you operate as a UK Limited Company (LTD) or a European-based GmbH, SARL, or BV, this guide covers everything you need to know.

Accounting and Tax Overview by Region

🇬🇧 United Kingdom (UK)

1. Accounting Requirements for UK LTD Companies

Must maintain accurate financial records (income, expenses, assets, liabilities)

Required to prepare annual financial statements

2. Tax Responsibilities

Corporation Tax: 19% on company profits (as of 2025)

VAT (Value Added Tax): Mandatory if annual turnover exceeds £90,000

PAYE (Pay As You Earn): If you have employees or pay yourself a salary

Annual Confirmation Statement: Due yearly to Companies House

Self-Assessment: Required if you take dividends

3. Filing Deadlines

Document	Deadline
Company Tax Return (CT600)	12 months after financial year end
Annual Accounts (Companies House)	9 months after year-end
Confirmation Statement	Every 12 months
VAT Returns (if registered)	Quarterly

4. Do You Need an Accountant?

Highly recommended

They handle:

Tax returns

Payroll

Dividend declarations

HMRC correspondence

Average cost: £300–£800/year depending on complexity

🇪🇺 European Union (General Guidelines)

Accounting and tax rules vary slightly between EU countries, but most follow similar patterns. Let’s explore key regions:

🇩🇪 Germany (GmbH)

Trade Register Reporting required

Must follow German GAAP or IFRS

Corporate Tax: ~15% + solidarity surcharge (~0.825%)

VAT (Umsatzsteuer): 19% standard rate

Must submit:

Annual financial statements (Jahresabschluss)

Advance VAT returns (monthly or quarterly)

Trade tax return (Gewerbesteuer)

Hiring a Steuerberater (German tax advisor) is highly recommended.

🇫🇷 France (SARL / SAS)

Must register with URSSAF and Chambre de Commerce

Submit balance sheet and income statement annually

Corporate Tax: 25% standard rate

VAT (TVA): 20% standard rate

Accounting software must comply with French law (FEC-compliant)

🇳🇱 Netherlands (BV)

Must submit annual report to the Dutch Chamber of Commerce

Corporate Income Tax (CIT): 19% up to €200,000; 25.8% above

VAT (BTW): 21% standard rate

Directors can be paid salary (subject to payroll tax)

Common Accounting Services Offered in UK & EU

Service	Description
Bookkeeping	Recording daily income and expenses
Annual Accounts Preparation	Year-end financial statements
Tax Return Filing	Corporation Tax, VAT, PAYE, etc.
Payroll Management	Employee salary, taxes, and benefits processing
VAT Registration & Returns	Setting up and managing VAT compliance
Business Bank Reconciliation	Matching transactions with bank records
Dividend Declarations	For LTD owners taking profit

Do You Need a Local Accountant?

Yes — here’s why:

Each country has different tax codes and deadlines

Language barriers can cause filing mistakes

Local accountants help with audits, notices, and government communication

They ensure your business stays compliant with minimal stress

Tip: Use a bilingual accountant if you operate from abroad.

Penalties for Non-Compliance

Failing to submit correct tax returns or accounting documents on time can lead to:

Financial penalties

Interest charges

Tax audits

Legal consequences (in serious cases)

Final Thoughts

Proper accounting and timely tax filing are critical for running a compliant business in the UK or Europe. Whether you’re just starting or already scaling, working with a local accountant and using the right software will save you time, money, and stress.

Important Note: The laws of the country where you plan to operate may change over time. Always review the most up-to-date legal regulations of that country before taking any action.